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Correspondent Bank

A financial institution that provides services on behalf of another, equal or unequal, financial institution. A correspondent bank can conduct business transactions, accept deposits and gather documents on behalf of the other financial institution. Correspondent banks are more likely to be used to conduct business in foreign countries, and act as a domestic bank's agent abroad.

Correspondent banks are used by domestic banks in order to service transactions originating in foreign countries, and act as a domestic bank's agent abroad. This is done because the domestic bank may have limited access to foreign financial markets, and cannot service its client accounts without opening up a branch in another country.

Laser Draft

Depending on the circumstances, Web BillPay can decide to send a laser draft instead of a purely electronic payment. A laser draft is printed with your checking account number and routing number on it and is similar to a personal check. The laser draft will clear after the payee has signed and deposited it, so there is no specific date as when your account will be debited for the payment.

A laser draft check is similar to a personal check and is printed with "Signature on File" in place of your signature. Your Fidelity Account is debited and the Payee receives funds when the Payee submits the check for deposit. As the laser draft check is similar to a personal check, the Service can not control presentment of laser draft checks since the Payee can delay cashing a laser draft check.

Funnel Account

Account opening state/money deposit state is not the same as the money withdraw state.

Automated Clearning House

Automated Clearing House (ACH) is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit payroll and vendor payments. ACH direct debit transfers include consumer payments on insurance premiums, mortgage loans, and other kinds of bills. Debit transfers also include new applications such as the point-of-purchase (POP) check conversion pilot program sponsored by NACHA - The Electronic Payments Association. Both the government and the commercial sectors use ACH payments. Businesses increasingly use ACH online to have customers pay, rather than via credit or debit cards.

Settlement Period

The period of time between the settlement date and the transaction date that is allotted to the parties of a transaction to satisfy the transaction's obligations. The buyer must make payment within the settlement period, while the seller must deliver the purchased security within this period.

Investopedia explains 'Settlement Period'

Depending on the type of security traded, the exact length of the settlement period will differ. The settlement period is often quoted as T+1, T+2 or T+3; which means the transaction date plus one, two or three days.

For stocks, the settlement period is three days (T+3) after the transaction. This means that the buyer must transfer cash to the seller, and the seller must transfer ownership of the stock to the buyer within three days after the trade was made.

For certificates of deposit and commercial paper, the transaction must be settled on the same day. For U.S. treasuries, it is the next day (T+1), and forex transactions are settled two days after (T+2).